A statement from Blue said a partnership with LRCP will provide financial backing to improve infrastructure, enhance its strategic plan for expansion, and build its management team.

The company said its business has expanded in the U.S. and Europe by an average of 30 percent a year for the past three years.

"Lake Rudd looks to partner with strong management teams and brands in growing industries to build world-class organizations. Blue is a brand that we see becoming the next leading company across several segments of the growing cycling industry," said Bill Overbay, managing partner of LRCP.

Under terms of the agreement, LRCP acquired the company from Michael and Jay Skop. The company said it will retain the majority of Blue's employees.

LRCP is a Providence, Rhode Island-based private equity firm specializing in investing in privately held and family-controlled businesses. More information: www.lakeruddcapital.com.